What is an authorized user on a credit card? What to know

As an authorized user on a credit card, you have access to the primary cardholder’s line of credit, but you’re not responsible for paying off the card each month. If the card issuer reports your authorized user activity to the credit bureaus, then that information can land on your credit reports and affect your credit. 

But whether it helps or hurts your credit will depend on how the primary cardholder manages the account.

• What is an authorized user?
• Does being an authorized user affect your credit?
• What are the risks of being an authorized user?
• How do I become an authorized user on a credit card?
• What are some other ways to build credit?
• What’s next?
• FAQs about being an authorized user on a credit card

What is an authorized user?

An authorized user is someone a primary cardholder adds to their credit card account, allowing them to make purchases. You typically get your own card that’s linked to the account, but you’re not legally responsible for paying the bill — that responsibility stays with the primary cardholder.

Authorized users are generally people with relationships to the primary cardholder, such as the primary cardholder’s partner, child or relative. But anyone can become an authorized user as long as they have permission from the cardholder.

Because the account can appear on the authorized user’s credit reports, becoming an authorized user is a common tactic to help those with limited credit history build credit from scratch.

Does being an authorized user affect your credit?

Being an authorized user can affect your credit if the card issuer reports the account to the major credit bureaus. Many issuers do, but they aren’t required to, so it’s worth confirming before you make the request.

If a credit card company does report authorized user account activity, then the account’s history gets added to the authorized user’s credit reports. This history includes the payment record, the balance and the age of the account. An authorized user’s credit scores can then move up or down based on how the primary cardholder handles the card.

How can I build credit as an authorized user?

You can build credit as an authorized user by being added to the account of a person with good credit history and a track record of paying their bills on time. Issuers typically report the account’s full history, not just the activity since you were added. So, a long-standing account with a clean track record can add years of responsible use to your credit file.

If the primary cardholder continues to pay on time and manage the account’s credit utilization well, they’ll continue to help you establish a positive credit record.

As an authorized user, you can also help keep the account in good standing by having open discussions with the primary cardholder about their expectations of you and any guidelines they have about your card usage.

Can being an authorized user hurt my credit?

Yes, being an authorized user can hurt your credit if the primary cardholder does not manage the account properly. If the primary cardholder misses payments or runs up a high balance, your credit scores could drop.

That said, some issuers don’t report negative activity for authorized users, and even when they do, it may not show up on all of your credit reports. Experian, for example, has stated it doesn’t include negative payment history on authorized user accounts.

Because you can inherit the bad along with the good, it’s critical to make sure that your friend or relative uses their credit card responsibly before you hop on board as an authorized user.

What are the risks of being an authorized user?

The main risks of being an authorized user all stem from the fact that while the account affects your credit, you have no control over how it’s managed. You also don’t necessarily know what will or won’t be reported to the credit bureaus. This means that, as an authorized user, you might have to deal with the following situations: 

• The primary cardholder stops paying — Payment history is the most important factor in your credit scores, and missed payments or a defaulted account can weigh on your credit for years.
• The balance climbs too high — Your credit utilization ratio, which measures how much of your available credit you’re using, is another important factor in your credit scores. In general, the lower your credit utilization, the better — provided your utilization is still above 0%. If the primary cardholder regularly racks up a large balance or doesn’t pay it off every month, it could damage your credit.
• The issuer doesn’t report authorized users — Some card issuers don’t report authorized user activity to the bureaus. If yours doesn’t, the account won’t help your credit at all.
• Your relationship with the primary cardholder gets strained — Sharing a financial account can cause friction if you disagree about spending or payments. That’s why it’s a good idea to talk about card usage and spending up front.

Can you remove yourself as an authorized user?

Yes. If your authorized user status is hurting your credit, or if you simply don’t want to be on the account anymore, you can call the card issuer and ask to be removed. If you call the issuer and find that new account information is still showing up on your credit reports, you have the right to file a dispute with the credit bureaus.

How do I become an authorized user on a credit card?

You can become an authorized user on a credit card by getting the primary cardholder to initiate the request with their credit card issuer. The process may vary, depending on the card issuer, but in every case, the primary cardholder needs to make the request. Here’s how it usually works:

1. Choose who to ask — Look for someone you trust who exhibits good credit habits, such as paying their bills on time and keeping their balances low. Most people ask a parent, partner or other family member.
2. Check that their issuer reports authorized users — This is crucial because a card issuer that doesn’t report authorized user activity won’t do you any good.
3. Have them add you — Depending on the card issuer, they may be able to add you as an authorized user online, in their mobile app or over the phone. They typically need to provide a few personal details, such as your name, date of birth and Social Security number.
4. Wait for it to show up — After you’re added, the account usually appears on your credit reports within a billing cycle or two, often 30 to 45 days.

What are some other ways to build credit?

You can build credit in a variety of ways, such as by opening your own credit card, opening a credit-builder product or signing up for a bill reporting service. 

Being an authorized user is just one way to establish credit, and it’s not right for everyone. Here’s a breakdown of the other ways you can build credit on your own:

• Open a secured credit card. With a secured credit card, you typically put down a refundable deposit equal to your credit limit, so you can qualify even without an established credit history. Keep your balance low and pay your bills on time to establish your credit history.
• Open a credit card for limited or no credit. Unsecured cards for little or no credit history can be worth a look if you’d rather not tie up cash in a deposit. Just note that some issuers charge higher annual percentage rates (APRs) and fees, even compared to secured cards.
• Take out a credit-builder loan. With a credit-builder loan, the money you borrow sits in an account until you pay it off, and the lender reports each payment to the bureaus along the way. Once you’ve repaid the loan, the money is generally released to you.
• Sign up for the Credit Karma Credit Builder plan. The Credit Karma Credit Builder plan combines a savings account and a line of credit in your name. You decide how much money to save each month, and that amount gets transferred from your line of credit into your savings account. Then, you pay off your line of credit, and those payments are reported to the credit bureaus. 
• Sign up for a bill reporting service. Some services report bills you’re already paying, like rent, utilities and phone bills, to one or more credit bureaus — either at no cost or for a small monthly fee. Credit Karma’s Credit Spark is a free service that can report bills like utility and phone bills to TransUnion for eligible users.

What’s next?

If you’re leaning toward becoming an authorized user, start by talking with the person whose account you’d be joining. Ask how they handle payments and balances, and agree on some ground rules together, like a spending limit or who keeps track of the statement, so it works for both of you. 

If you’d rather build credit from scratch on your own, start by figuring out where your credit stands. Credit Karma provides free VantageScore 3.0 credit scores, as well as free credit reports, from TransUnion and Equifax. 

Once you have a better understanding of your current credit profile, you can choose the credit-building option that fits your needs, whether that’s a secured card, a credit-builder loan, a bill reporting service or something else.